Hexcel Corp Shares Drop Following Q3 Earnings Report and Conservative Guidance
Hexcel Corp (HXL) shares fell approximately 11.8% following its third-quarter earnings release. While the company beat earnings per share estimates with $0.50 compared to the predicted $0.49, total sales of $496.4 million missed analyst expectations of $501.8 million. Despite the revenue miss, Hexcel saw an 8.8% year-over-year sales growth, driven by a 20.5% surge in commercial aerospace sales which offset an 8.7% decline in defense sales. The stock's decline appears to be driven by investor disappointment regarding management's full-year guidance. Hexcel maintained its previous forecast of $2.30 to $2.40 per share in non-GAAP diluted earnings and annual sales between $2.025 billion and $2.125 billion. Because the stock was trading at a high valuation of over 33 times its earnings forecast, investors were looking for an upward revision to lower the price-to-earnings ratio, which did not materialize.
Tickers: $HXL
Topics: aerospace industry earnings miss revenue guidance stock price volatility